Aspen Mortgage

Step 8: Which Mortgage Lender?

• Compare Costs: Different mortgage companies offer different products, and it generally becomes difficult to compare costs. Don't pick a mortgage company soley on the basis that it has the lowest closing costs. Trying to save $100 up front and going with the wrong firm could result in costing you $100's at closing. Stay clear of gimics such as free T.V.'s or a free appraisal. Remember, nothing is free.

• Mortgage Rate: Compare rates of different Mortgage companies. Most of the lenders in a geographic area offer similar rates. A lower rate means a lower mortgage if all the other parameters are same. If a company quotes a rate that is .25% or more lower than the average mortgage company, stear clear it is probably a come on. For most loans lenders ultimately go to the same source for their money.

• Closing Cost: Get a breakdown of all the possible Closing Costs. The lender should be able to offer you a detailed breakdown of the potential costs called a 'Good Faith Estimate'.

• Fees: Different lenders have different Fee structures. Some lenders offer discounts for first time home-buyers and discounts for employees of some companies (from where they get bulk business).

• Closing Date: Ask the lender:
  • If they would be able to close the loan when you want to
  • Which day of the month would they close the loan
  • Location of closing.

• Servicing: Ask how they would service the mortgage. The mortgage may be sold on the secondary market.

• Number of years in Business: This will give you some sense of their experience and commitment in the business.

• Mortgage Agent's service: It is important that the agent you interact with is able to offer you professional service, is sensitive to your needs and is thorough with documentation.

• Location/Convenience: People generally take mortgage loans from lenders who are geographically in the same area as they are. Therefore this is another important criteria to consider.

• Other factors: Plus some other factors of importance to your particular case.